Jihye Heo

Jihye Heo

Assisant Professor in Economics, Oberlin College

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ECON 101: Principles of Economics

, , 1900

Interactive Learning Games

These interactive simulations help you understand key economic concepts through hands-on decision-making. —

1. 🌮 Taco Truck: Perfect Competition Simulator

Learn about perfect competition by running your own taco truck business! Experience firsthand how:

  • Firms are price-takers in perfect competition
  • Easy entry leads to zero economic profit in the long run
  • The shutdown decision rule works (P vs AVC vs ATC)
  • Markets reach long-run equilibrium
    How to use: Play through the game and download your results at the end. —

    2. 💰 Second Degree Price Discrimination Simulator

    Master the art of pricing strategy by learning how firms use product tiers and quality differences to maximize revenue! Understand how:

  • Firms design product versions to make customers self-select
  • The tie-breaking rule affects customer choices when indifferent
  • Basic tier pricing extracts surplus from low-value customers
  • Premium tier pricing is set to prevent high-value customers from “trading down”
    Three Real-World Scenarios:
  • Cloud Storage: Basic vs Premium plans with different storage limits
  • Airline Tickets: Early Bird vs Flexible tickets with different restrictions
  • Coffee Shop: Small vs Large Premium drinks with size-based pricing
    How to use: Choose a scenario, set your prices for both tiers, and see how customers respond. Download your certificate when you find the optimal pricing strategy! —

    3. 🤝 Prisoner’s Dilemma: Game Theory Simulator

    Explore strategic decision-making and game theory through the classic Prisoner’s Dilemma! Discover how:

  • Individual rationality leads to collective irrationality
  • Cooperation vs defection creates different payoffs
  • Repeated games change strategic incentives
  • Different strategies (Tit-for-Tat, Always Cooperate, etc.) perform
    Two Modes Available:
  • AI Mode: Practice against different computer strategies with detailed analytics
  • Multiplayer Mode: Play in real-time with classmates across different devices
    How to use: Choose your mode and start playing. Perfect for in-class demonstrations or homework assignments! —

    4. ⚡ Externality Economics: AI Datacenter Game

    Learn about negative externalities and congestion effects through an interactive multiplayer simulation! Experience how:

  • Individual profit-maximizing decisions create costs for everyone (including non-participants)
  • Grid congestion increases electricity rates as production rises
  • Datacenter profits come at the expense of neighborhood households
  • The tragedy of the commons emerges from rational individual choices
    Key Learning Concepts:
  • Negative Externalities: Production decisions affect both firms and local households
  • Congestion Pricing: Electricity rate (α) increases with average production level
  • Social Cost vs Private Cost: Firms don’t internalize the costs imposed on households
  • Market Failure: Competitive pressure drives overproduction beyond socially optimal levels Game Mechanics:
  • 3 Rounds of production decisions with results analysis after each round
  • Each firm chooses production level (0-100 units)
  • Revenue: $10 per unitProduction Cost: $3 per unit
  • Electricity Bill: $30 (base) + α × (production), where α depends on grid strain:
    • Low strain (avg ≤ 50): α = 0.15
    • Moderate strain (avg 51-75): α = 0.25
    • High strain (avg ≥ 76): α = 0.35
  • Household Impact: Local households (using 30 units) face the same α rate, creating visible externality effects Phase Structure:
  • Tutorial: Learn the game mechanics and externality concept
  • Round 1-3: Make production decisions, see results with household impact
  • Final Summary: Aggregate analysis across all rounds with policy discussion Two Roles Available:
  • Instructor Mode: Create rooms, advance through phases manually, view all analytics
  • Student Mode: Join with room code, make production decisions, see results How to use: Instructor creates a room and shares the code. Students join on their devices and make production choices each round. After each round, results show both firm rankings and household electricity bills, clearly demonstrating the negative externality. Perfect for teaching market failures and policy interventions!